Kieran O'Donnell (Fine Gael) | Oireachtas source

I welcome the Minister of State to the House. In the relatively short time available to me, I wish to speak about the principles underpinning the budget. This budget is very much based on the themes of the previous two budgets. First, it is about ensuring that we are managing the public finances in a sound manner. In that context, we will have a budget surplus next year and are bringing the deficit down to 0.1% this year.

Second, it is about improving living standards and dealing with the vulnerable in our society. The Government has raised the point at which people start paying the top rate of income tax by €750 to over €35,000. We have also reduced the 4.75% rate of USC by 0.25%. We are increasing the minimum wage and are making sure that those earning that wage remain outside the tax net. I am particularly pleased with the announcement that jobseeker's benefit will be available to the self-employed from 2019. My colleague, Senator Ray Butler, has been championing this for many years. I was self-employed for between ten and 12 years. I had an accountancy practice and was self-employed in terms of my bread and butter. I feel strongly that we must look after the self-employed.

We now have full employment and in that context, the Government must ensure that living standards improve. Equally, we must ensure that additional taxes are used to look after the vulnerable. Social welfare payments have increased by €5 and additional funding has been directed towards the affordable childcare scheme. We are looking after those who are vulnerable and those in difficult situations in many ways. We are increasing the exemption limits in the context of the lone parent payment. Improvements have been made across a range of areas and are very welcome.

Given that we are now at full employment, we must direct money to drive investment. A total of €7.3 billion has been provided for capital investment this year, a 24% increase on last year. Significant investment will be made across a range of areas. In Limerick, the prison will be redeveloped and a new wing built onto the female prison. There will also be major investment in Shannon Foynes Port. A tax relief scheme will benefit Troy Studios, which has been a major investor in Limerick. It will be able to avail of more relief because it is investing outside the Dublin region. We are seeking to build a regional film industry and Troy Studios is an example of regional development in practice.

On housing, we should be working together and not point scoring. This year's budget will see €2.3 billion going into housing and €6 billion will be spent over three years. An affordable housing scheme is already in existence through the Land Development Agency, the aim of which is to build affordable housing on public lands. What was announced today in terms of affordable housing is not new. The Government already has an affordable housing scheme in place. Housing is about a range of measures. Do people have to go into the rental market? Yes, they do, which is why we need to provide more money for the HAP scheme. Would I like to see a strong social housing building programme undertaken by the local authorities? Yes I would and that is now happening. We must remember, however, that we came from a standstill. Little or no local authority housing had been built since 2008. Such activity was gone but we have now brought it back.

I feel very strongly about the need to build social housing but we must do it in a prudent way. Over the last four years, the level of current spending has increased by around 20%, which is way below the growth rate for the same period. By contrast, in the period between 2005 and 2009, current spending increased by nearly 10% per annum. We have to operate within budgetary constraints. In this budget, current spending is increasing by 4% but our growth rate is 4.2%. Our debt to GNI* ratio is coming down.While that is something I am very conscious of, we must proceed in a way that allows us to look after the interests of people.

Brexit is the biggest variable and unknown that we will face since the economic crash and the bailout of the banks. Provision is made in this budget for €300 million to go into a fund for SMEs and the agricultural sector, and €110 million to various Government agencies. Further funding is going to the Peace programme. There is investment in human capital, a training initiative that will get €300 million. That comes to more than €700 million. We should not lose sight of the fact that in the next ten days we expect a withdrawal agreement to be reached that ensures the backstop will be in place so that there will not be a hard border in the North.

The theme of this budget, similar to previous budgets, is that the Government wants to improve the lives of people who are working as well as the lives of people who are going through difficult times, whether they happen to be unemployed or disabled, but we must do it within the constraints of the public finances.

We are putting €500 million into a rainy day fund. Such a fund is needed because the winds of Brexit are coming downstream. There is a major increase in investment in education and health.

We have an ageing population and must make decisions on health spending. We want to ensure that we deal with the health concerns of people. We have a project for 60 modular beds at University Hospital Limerick. I am very confident that the Minister for Health, Deputy Harris, will deliver as he has given a commitment that he expects that this project will be included in his capital budget for this year. There is a major capacity issue in terms of beds in the region. The two areas with capacity issues are Drogheda and Limerick. The situation in Drogheda is being remedied and we need to ensure that we get the funding at local level.

This is a caring and responsible budget. It follows a theme of giving back to the people, investing for the future, and ensuring that we can deal with Brexit and that our public finances are sustainable. One of the problems was that current spending went out of control on the back of unsustainable tax receipts from stamp duty. We can never go back to those days again.

I commend this budget to the House and I thank the Minister of State, Deputy D'Arcy for his presence.